[ET Net News Agency, 26 January 2026] The three major US stock indices ended Friday
(23rd) with mixed performances. However, as the US threatened to impose 100% tariffs on
Canadian goods and Republican dissent reignited the risk of another federal government
shutdown, global markets were once again gripped by unease. The Hang Seng Index had a
volatile morning session, opening 94 points higher before swiftly plunging to 26,619,
breaking below the 10-day moving average (around 26,740), then rebounding to 26,911 before
slipping back into negative territory. By the end of the morning, the index had recovered
steadily, closing at 26,775, up 26 points or less than 0.1%, with main board turnover near
HKD 151.1 billion. The Hang Seng China Enterprises Index finished at 9,153, down 7 points
or less than 0.1%. The Hang Seng Tech Index fell 75 points or 1.3% to 5,722.

"Nip Chun Pong: HSI likely to remain rangebound in the short term"

The HSI briefly touched 26,911 in early trade, coming within 100 points of the 27,000
mark, but quickly retreated. Nip Chun Pong, the Chief Strategist at Solo Securities, told
ET Net News Agency that the HSI could make another attempt to break 27,000 before the end
of the month, but is unlikely to hold above that level, and will probably continue to move
within a narrow 26,500-27,000 range. He noted that earlier this month, the index managed
to close above 27,000 for four straight sessions, backed by turnover exceeding HKD 300
billion, but ultimately failed to sustain those gains. Nip believes this was partly due to
some institutional investors setting programmed trades to take profits once the HSI
breached 27,000. He expects this pattern to repeat, stressing that only turnover above HKD
300 billion could absorb such selling pressure. With current turnover around HKD 240
billion, holding above 27,000 will be much more difficult.

"Gold miners stocks preferable to ETFs at current levels"

In Asian trading this morning, both spot and New York gold futures gapped higher,
breaking the historic USD 5,000 level, with New York futures surging past USD 5,100 in
just three hours. Nip Chun Pong pointed out that geopolitical tensions, such as US-Europe
disputes over Greenland, the upcoming Japanese parliamentary election, and US hardline
moves on Iran, are the main drivers behind the gold rally. He expects that Trump, aiming
to boost Republican prospects in the midterm elections, will continue to take a tough
global stance, supporting further gains in gold. He forecasts that gold could reach USD
5,200-5,300 in the first quarter.
For investors seeking to profit from gold's rise, Nip suggests that while buying gold
ETFs allows direct exposure, the upside is now limited with the price already close to the
Q1 target of USD 5,300. Even leveraged gold ETFs, such as FL2 CSOP Gold (07299), may
encounter resistance around HKD 39 by month end. Leveraged ETFs are only suitable for
those with a high risk appetite. By contrast, gold mining stocks are a better option at
the current stage. Nip notes that while gold miners have already rallied alongside gold,
taking small positions is advisable. Cautious investors may wait for Zijin Mining (02899)
to pull back to around HKD 40-41 to buy, while aggressive investors may buy at current
prices, with a target of HKD 46-47.

"Precious metal strength dampens lunar new year play in consumer sector"

With less than a month to go before the Lunar New Year, the market had been hoping for a
festive boost for consumer stocks. Nip Chun Pong said that in the past, Lunar New Year
themes were more appealing, but this year, resource stocks, especially precious and
non-ferrous metals, have been outperforming, potentially undermining the consumer sector's
festive rally. In new consumer names, IP concepts like Pop Mart (09992) and Bloks (00325)
have already posted notable gains last week and now face profit-taking pressure; today,
only tea beverage stocks fared relatively well. Nip noted that unless gold enters a period
of high-level consolidation in the coming week, funds are unlikely to rotate strongly into
new consumer names. If investors are keen to deploy now, buying Laopu Gold (06181) may be
preferable as it sits at the intersection of new consumption and gold beneficiary,
offering more upside. Nip believes the stock could reach HKD 900 or even 920 by
quarter-end, with entry at HKD 830 or below being ideal. For tea and IP concept stocks, he
suggests waiting two or three sessions for the price to stabilise before taking a small
position.
As for traditional consumer shares, Nip believes that both dairy and restaurant stocks
have already risen considerably and are now less attractive. For restaurant stocks, he
recommends waiting for a 5-8% pullback from current levels before considering an entry.